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https://www.theguardian.com/environment/2026/mar/11/australian-governments-subsidising-fossil-fuel-use-by-more-than-30000-a-minute-analysis-finds>
"Australian federal and state government subsidies that encourage fossil fuel
use and help drive the climate crisis will reach $16.3bn this year after
leaping by nearly 10%, according to a new analysis.
It found federal and state governments will pay or forgo the equivalent of
$31,020 each minute in 2025-26 to subsidise companies producing and using coal,
gas and especially oil, mostly in the form of diesel.
The annual analysis by progressive thinktank the Australia Institute found
fossil fuel subsidies were now increasing at a more rapid pace than funding for
the national disability insurance scheme (NDIS), which has been criticised in
the past for cost blowouts.
Using government budget papers and announcements, the institute said national
support for fossil fuels was expected to grow by 9.4%. The cost of the NDIS was
forecast to rise by 7.6%.
The biggest subsidy was the federal government’s fuel tax credit scheme, which
refunds mining companies, farmers, tourism operators and other industries the
excise paid on petrol and diesel.
Most consumers pay an indexed excise – currently 52.6c a litre, and increasing
every six months – when filling up their car. Businesses that use the fuel to
run vehicles on private roads, drive heavy vehicles on public roads or buy
diesel to run machinery qualify for a rebate. The scheme was forecast to cost
$10.8bn this year, up from $10.2bn last year.
The credit scheme has been maintained under Labor and Coalition governments and
is backed by lobby groups such as the Minerals Council of Australia. Supporters
say fuel excise is collected to fund roads and businesses that use the fuel to
run cars and equipment on private roads and properties should not have to pay
it.
Critics of the scheme, including the Australia Institute, say the overwhelming
majority of fuel excise contributes to general budget revenue and is not
explicitly linked to road building and maintenance. They say the refunds
encourage greater burning of fossil fuels and work against policies that
incentivise businesses to embrace lower emissions vehicles and other
technology.
Rod Campbell, the Australia Institute’s research director, said the main
benefits of the scheme were multinational mining companies. Coalminers were
expected to receive more than $1bn this year."
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
